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2021-2031 Long Term Plan

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2021-2031 Long Term Plan Te Kaunihera-ā-Rohe o Ruapehu Ruapehu District Council LONG TERM PLAN 2021-2031 Table of Contents Mayor and Chief Executives Foreword ............................................................................. 4 PART 1 – WHAT IS THE LONG TERM PLAN? ................................................................... 6 The Long Term Plan .......................................................................................................... 7 Putting the Pieces Together .............................................................................................. 8 Community Engagement and the LTP ............................................................................... 9 Consultation Document ................................................................................................... 11 Community Engagement Outcomes ................................................................................ 12 Overview of Council’s Income and Expenditure .............................................................. 13 Vision and Council Focuses ............................................................................................ 14 Community Well-being Outcomes ................................................................................... 15 Spatial Plan ..................................................................................................................... 16 Global Trends and Risks ................................................................................................. 18 PART 2 – Council Activities ............................................................................................. 23 Council Activities, Facilities, Assets and Community Services ......................................... 24 Facilities and Assets ........................................................................................................ 25 Land Transport ................................................................................................................ 26 Water Supply ................................................................................................................... 32 Wastewater (Sewerage) .................................................................................................. 41 Stormwater & Flood Protection ........................................................................................ 48 Solid Waste ..................................................................................................................... 54 Recreational and Community Facilities and Community Property .................................... 60 Community Services ........................................................................................................ 73 Community Support ................................................................................................. 74 Leadership .............................................................................................................. 80 Regulation ............................................................................................................... 87 PART 3 – Planning Assumptions, Policies and Strategies ............................................ 94 Significant Assumptions & Population Projections 2021-31 ............................................. 95 Infrastructure Strategy ................................................................................................... 149 Financial Strategy .......................................................................................................... 216 Significant and Engagement Policy (Summary) ............................................................. 228 Revenue and Financing Policy ...................................................................................... 229 PART 4 – Financials ........................................................................................................ 251 Funding Impact Statement ............................................................................................. 252 Schedule of Rates for 2021/22 ...................................................................................... 259 Rating Examples ........................................................................................................... 260 2 Financial Statements ..................................................................................................... 263 Statement of Comprehensive Revenue and Expense ............................................ 278 Statement of Changes in Net Assets / Equity ........................................................ 279 Statement of Financial Position ............................................................................. 280 Prospective Cash Flow Statement ......................................................................... 282 Funding Impact Statement all of Council ............................................................... 283 Cost of Support Funding Impact Statement ........................................................... 285 Reconciliation to Financial Impact Statement to Comprehensive Income .............. 287 Other Disclosures Statement ......................................................................................... 288 Additional Information or Comment................................................................................ 293 Audit Report .................................................................................................................. 294 3 MAYOR AND CHIEF EXECUTIVE’S FOREWORD Council is pleased to present its ten-year Long Term Plan for 2021-2031. Development of this Long Term Plan had a number of unique challenges most significantly due to the status of 3 waters (drinking, waste and storm) and the long tail of COVID-19 which still has some sting in it yet. COVID-19 impacted on the Long Term Plan in a number of areas including a higher, COVID-19 revised, Local Government Cost Index for planning, a drop in revenue at the i-SITEs and of key funders such as Waka Kotahi NZ transport agency, as well as providing funding opportunities which has allowed Council to increase levels of service in areas such as housing. Council needed to work extremely hard to bring the average rate increase down to the final 4.92% level for the 2021/22 year which reflects the increasing cost challenges posed by these and other issues. While we are unhappy that it is above our target rate guideline of 3.5% it is the minimum required to keep building on current momentum and support the development of our communities and their aspirations. There are a number of drivers which will determine individual rate demands notably being property revaluations and whether your property attracts water rates. Property revaluations saw significant jumps in average Ruapehu capital values with average rural values increasing by 25%, average commercial values by 31%, and average urban by 61%. The 'big ticket' item for this Long Term Plan however is the expenditure and associated debt required to bring the districts 3 waters systems in-line with the new government legislated standards. This saw water rates having the largest influence on individual rate demands with urban properties having an average rate requirement change of +7.84% whereas commercial properties were +2.55% and rural +1.77%. While the Government’s 3 Waters Reform Program is proceeding at pace, key decisions relating to the establishment of new multi-regional entities to take over water assets, and the information required to help us make the decision on the available options, will not be known until later this year. As a result, Council was required to consult on the basis of ‘business as usual’ - as if Council will continue to own, maintain and deliver water services into the future. This includes the water debt associated with meeting the Government’s mandated water quality standards which without any further funding assistance is projected to reach $65m by 2031. Despite there still being many unknown factors around 3 waters reform ratepayers have supported Council's accelerated capital water works strategy that will make Ruapehu compliant with the new water standards within five years. Under the current indications from Government we expect that by the next Long Term Plan review in 2024 a new water entity will have taken control of Council's water services and the associated debt. The other major drivers of new debt in this Long Term Plan are roading (15%) and township revitalisation (20%) that together with water will see total debt reach $100m. While this level of debt is extremely uncomfortable it should be seen as a ‘theoretical projection’ given the anticipated changes to 3 waters delivery. It is also worth noting that our debt covenant with the Local Government Funding Agency is for our total borrowing to be no more than 175% of our revenue and we remain within this for all ten years of the Long Term Plan. Support for increasing township revitalisation funding to $11m and Pride of Place Funding to $100,000 per annum came through strongly in submissions to the LTP. The townships that have enjoyed the benefits of redevelopment projects are keen to see this momentum continue while other townships are organising and developing plans. Communities can now be assured that there is funding available for their township and they have the freedom to work on their own plans at their own pace. 4 While Council did not have a specific question on roading in the Long Term Plan consultation
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